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Cobalt and Ellex Advise on HKScan Sale of Baltic Business to Maag Grupp

Cobalt and Ellex Advise on HKScan Sale of Baltic Business to Maag Grupp

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Cobalt, working with DLA Piper, has advised the HKScan corporation on the sale of its Baltic subsidiaries to the Maag Grupp. Ellex advised the buyer.

Closing is expected in the second half of 2023, pending regulatory approval.

"The debt-free purchase price is EUR 90 million, of which EUR 20 million is conditional on the combined performance of the separately defined meat business subject to the transaction and Maag Grupp’s Baltic meat business in the following years," Cobalt informed.

HKScan is a Northern-European food company operating in Finland, Sweden, Denmark, and the Baltics. The company’s Baltic production units are located in Rakvere, Tabasalu, and Viiratsi in Estonia and Jelgava in Latvia.

The Maag Grupp is an Estonian food manufacturing company operating in the meat and dairy business.

"The sale of the Baltic business will improve HKScan’s profitability and strengthen its balance sheet," HKScan Interim CEO Juha Ruohola commented. "In addition, the divestment will enhance our ability to improve our operational efficiency and to execute our long-term strategy of growing into a versatile food company."

The Cobalt team included Estonia-based Partner Martin Simovart, Managing Associate Jesse Kivisaari, and Associate Getter Villmann, Lithuania-based Managing Partner Irmantas Norkus, Managing Associate Deimante Pagiriene, and Senior Associate Zygintas Voronavicius, and Latvia-based Partner Guntars Zile and Senior Associates Diana Zepa.

The Ellex team was led by Estonia-based Partner Sven Papp and included Partner Martin Maesalu, Counsels Gerda Liik and Jaanus Ikla, Senior Associates Hanna Pahk and Merlin Liis-Toomela, Associate Kevin Gerretz, and Lawyers Erik Seim and Miikael Tuus; Latvia-based Partners Filips Klavins and Liga Merwin, Senior Counsel Iveta Ceple, Senior Associates Marta Cera, Anna Misneva, Inese Freivalde, and Edvijs Zandars, Associates Ints Skaldis, Kristers Losans, and Mikijs Zimecs; and Lithuania-based Associate Partner Edvinas Beikauskas, Senior Associates Mantas Juska and Marijus Dingilevskis, and Associates Ieva Krivickaite, Kamile Skrupskyte, and Ainis Augustas Petrulis.

DLA Piper fielded a Helsinki-based team led by Country Managing Partner Ilkka Liljeroos.

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